IDEAS home Printed from https://ideas.repec.org/a/kap/mktlet/v34y2023i2d10.1007_s11002-022-09643-6.html
   My bibliography  Save this article

The role of presentation order in consumer choice: the abrupt disparity effect

Author

Listed:
  • Kivilcim Dogerlioglu-Demir

    (Sabanci University Orhanli-Tuzla)

  • Cenk Koçaş

    (Sabanci University Orhanli-Tuzla)

  • Nilsah Cavdar Aksoy

    (Galatasaray University Ortakoy-Besiktas)

Abstract

Extant research in presentation of products in a product line shows that price structure of items affects consumers’ decision-making. Extremeness aversion may hinder individuals to choose premium options in a product line. Thus, our paper aims at finding a viable way to promote the most expensive (and highest quality) items in relatively large choice sets. We introduce the abrupt disparity effect which suggests that the choice probability of the premium product increases when consumers are exposed to a series of items that are presented in an ascending price (and quality) order that is capped with an extremely inferior option positioned right next to the premium. In five experiments, we explore the abrupt disparity effect that has not been hitherto examined in the marketing literature. We hope to illustrate this new ordering effect, its boundary conditions, and provide novel insights to marketers.

Suggested Citation

  • Kivilcim Dogerlioglu-Demir & Cenk Koçaş & Nilsah Cavdar Aksoy, 2023. "The role of presentation order in consumer choice: the abrupt disparity effect," Marketing Letters, Springer, vol. 34(2), pages 251-268, June.
    • Handle: RePEc:kap:mktlet:v:34:y:2023:i:2:d:10.1007_s11002-022-09643-6
    DOI: 10.1007/s11002-022-09643-6
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11002-022-09643-6
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11002-022-09643-6?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Simonson, Itamar, 1989. "Choice Based on Reasons: The Case of Attraction and Compromise Effects," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 16(2), pages 158-174, September.
    2. Amos Tversky & Daniel Kahneman, 1991. "Loss Aversion in Riskless Choice: A Reference-Dependent Model," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(4), pages 1039-1061.
    3. Itamar Simonson & Stephen Nowlis & Katherine Lemon, 1993. "The Effect of Local Consideration Sets on Global Choice Between Lower Price and Higher Quality," Marketing Science, INFORMS, vol. 12(4), pages 357-377.
    4. Schreiner, Timo & Rese, Alexandra & Baier, Daniel, 2019. "Multichannel personalization: Identifying consumer preferences for product recommendations in advertisements across different media channels," Journal of Retailing and Consumer Services, Elsevier, vol. 48(C), pages 87-99.
    5. Nowlis, Stephen M & Kahn, Barbara E & Dhar, Ravi, 2002. "Coping with Ambivalence: The Effect of Removing a Neutral Option on Consumer Attitude and Preference Judgments," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 29(3), pages 319-334, December.
    6. Francisca Sinn & Sandra Milberg & Leonardo Epstein & Ronald Goodstein, 2007. "Compromising the compromise effect: Brands matter," Marketing Letters, Springer, vol. 18(4), pages 223-236, December.
    7. Botti, Simona & Hsee, Christopher K., 2010. "Dazed and confused by choice: How the temporal costs of choice freedom lead to undesirable outcomes," Organizational Behavior and Human Decision Processes, Elsevier, vol. 112(2), pages 161-171, July.
    8. Sauer, Matthias, 2014. "Cue-recognition effects in the assessment of movie trailers," Journal of Retailing and Consumer Services, Elsevier, vol. 21(3), pages 376-382.
    9. Huber, Joel & Puto, Christopher, 1983. "Market Boundaries and Product Choice: Illustrating Attraction and Substitution Effects," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 10(1), pages 31-44, June.
    10. Kristin Diehl & Gal Zauberman, 2005. "Searching Ordered Sets: Evaluations from Sequences under Search," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 31(4), pages 824-832, March.
    11. Petroshius, Susan M & Monroe, Kent B, 1987. "Effect of Product-Line Pricing Characteristics on Product Evaluations," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 13(4), pages 511-519, March.
    12. Ketron, Seth & Spears, Nancy, 2017. "Liar, liar, my size is higher: How retailer context influences labeled size believability and consumer responses to vanity sizing," Journal of Retailing and Consumer Services, Elsevier, vol. 34(C), pages 185-192.
    13. Lynch, John G, Jr & Chakravarti, Dipankar & Mitra, Anusree, 1991. "Contrast Effects in Consumer Judgments: Changes in Mental Representations or in the Anchoring of Rating Scales?," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 18(3), pages 284-297, December.
    14. Holger Müller & Eike Kroll & Bodo Vogt, 2012. "Do real payments really matter? A re-examination of the compromise effect in hypothetical and binding choice settings," Marketing Letters, Springer, vol. 23(1), pages 73-92, March.
    15. Gauzente, Claire & Roy, Yves, 2012. "Message content in keyword campaigns, click behavior, and price-consciousness: A study of millennial consumers," Journal of Retailing and Consumer Services, Elsevier, vol. 19(1), pages 78-87.
    16. Benedikt Schnurr & Alexandra Brunner-Sperdin & Nicola E. Stokburger-Sauer, 2017. "The effect of context attractiveness on product attractiveness and product quality: the moderating role of product familiarity," Marketing Letters, Springer, vol. 28(2), pages 241-253, June.
    17. Chernev, Alexander, 2003. "When More Is Less and Less Is More: The Role of Ideal Point Availability and Assortment in Consumer Choice," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 30(2), pages 170-183, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Diels, Jana Luisa & Wiebach, Nicole & Hildebrandt, Lutz, 2013. "The impact of promotions on consumer choices and preferences in out-of-stock situations," Journal of Retailing and Consumer Services, Elsevier, vol. 20(6), pages 587-598.
    2. Heribert Gierl & Hans Höser, 2002. "Der Reihenfolgeeffekt auf Präferenzen," Schmalenbach Journal of Business Research, Springer, vol. 54(1), pages 3-18, February.
    3. Lichters, Marcel & Müller, Holger & Sarstedt, Marko & Vogt, Bodo, 2016. "How durable are compromise effects?," Journal of Business Research, Elsevier, vol. 69(10), pages 4056-4064.
    4. Gomez, Yolanda & Martínez-Molés, Víctor & Urbano, Amparo & Vila, Jose, 2016. "The attraction effect in mid-involvement categories: An experimental economics approach," Journal of Business Research, Elsevier, vol. 69(11), pages 5082-5088.
    5. Müller, Holger & Benjamin Kroll, Eike & Vogt, Bodo, 2010. "“Fact or artifact? Empirical evidence on the robustness of compromise effects in binding and non-binding choice contextsâ€," Journal of Retailing and Consumer Services, Elsevier, vol. 17(5), pages 441-448.
    6. Marcel Lichters & Marko Sarstedt & Bodo Vogt, 2015. "On the practical relevance of the attraction effect: A cautionary note and guidelines for context effect experiments," AMS Review, Springer;Academy of Marketing Science, vol. 5(1), pages 1-19, June.
    7. Marcel Lichters & Marko Sarstedt & Bodo Vogt, 2015. "On the practical relevance of the attraction effect: A cautionary note and guidelines for context effect experiments," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 5(1), pages 1-19, June.
    8. repec:cup:judgdm:v:8:y:2013:i:2:p:136-149 is not listed on IDEAS
    9. Chorus, Caspar G., 2014. "Benefit of adding an alternative to one׳s choice set: A regret minimization perspective," Journal of choice modelling, Elsevier, vol. 13(C), pages 49-59.
    10. Chunhua Wu & Koray Cosguner, 2020. "Profiting from the Decoy Effect: A Case Study of an Online Diamond Retailer," Marketing Science, INFORMS, vol. 39(5), pages 974-995, September.
    11. Andreas Herrmann & Mark Heitmann & Andreas Brandenberg & Torsten Tomczak, 2007. "Automobilwahl online — Gestaltung des Car-Konfigurators unter Berücksichtigung des individuellen Entscheidungsverhaltens," Schmalenbach Journal of Business Research, Springer, vol. 59(3), pages 390-412, May.
    12. Heribert Gierl & Christina Eleftheriadou, 2005. "Asymmetrisch überlegene Stockouts als Phantomprodukte," Schmalenbach Journal of Business Research, Springer, vol. 57(6), pages 475-502, September.
    13. repec:hum:wpaper:sfb649dp2011-050 is not listed on IDEAS
    14. repec:hum:wpaper:sfb649dp2008-057 is not listed on IDEAS
    15. Terry Connolly & Jochen Reb & Edgar E. Kausel, 2013. "Regret salience and accountability in the decoy effect," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 8(2), pages 136-149, March.
    16. Wiebach, Nicole & Diels, Jana L., 2011. "The impact of context and promotion on consumer responses and preferences in out-of-stock situations," SFB 649 Discussion Papers 2011-050, Humboldt University Berlin, Collaborative Research Center 649: Economic Risk.
    17. Ekström, Mathias, 2021. "The (un)compromise effect: How suggested alternatives can promote active choice," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 90(C).
    18. J-J Huang, 2009. "Revised behavioural models for riskless consumer choice," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 60(9), pages 1237-1243, September.
    19. Yan, Huan & Chang, En-Chung & Chou, Ting-Jui & Tang, Xiaofei, 2015. "The over-categorization effect: How the number of categorizations influences shoppers' perceptions of variety and satisfaction," Journal of Business Research, Elsevier, vol. 68(3), pages 631-638.
    20. A. Ye(scedilla)im Orhun, 2009. "Optimal Product Line Design When Consumers Exhibit Choice Set-Dependent Preferences," Marketing Science, INFORMS, vol. 28(5), pages 868-886, 09-10.
    21. Pettibone, Jonathan C. & Wedell, Douglas H., 2000. "Examining Models of Nondominated Decoy Effects across Judgment and Choice," Organizational Behavior and Human Decision Processes, Elsevier, vol. 81(2), pages 300-328, March.
    22. Holger Müller & Eike Kroll & Bodo Vogt, 2012. "Do real payments really matter? A re-examination of the compromise effect in hypothetical and binding choice settings," Marketing Letters, Springer, vol. 23(1), pages 73-92, March.
    23. William M. Hedgcock & Raghunath Singh Rao & Haipeng (Allan) Chen, 2016. "Choosing to Choose: The Effects of Decoys and Prior Choice on Deferral," Management Science, INFORMS, vol. 62(10), pages 2952-2976, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:mktlet:v:34:y:2023:i:2:d:10.1007_s11002-022-09643-6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.